Bankman-Fried, the Founder of FTX, has faced another legal setback as an appeals court rejected his attempt to secure pre-trial release ahead of his upcoming trial scheduled for October 3rd. This decision comes after a series of legal challenges and controversy surrounding the crypto entrepreneur.

Bankman-Fried Faces Legal Setback as Trial Approaches

In August, Bankman-Fried's release on bond was revoked by a judge who ruled that he had allegedly attempted to tamper with witnesses in his ongoing legal case. Earlier this month, his request to overturn this decision was also denied, and yesterday, an appeals court upheld that denial.

The appeals court stated their decision: "We reject [Bankman-Fried’s] contention that the district court failed to consider a less restrictive alternative to detention. The record shows that the district court considered all of the relevant factors, including the Defendant-Appellant’s course of conduct over the time that had required the district court to repeatedly tighten the conditions of release."

Despite objections from Bankman-Fried's counsel, Judge Kaplan ruled in favor of incarceration. U.S. prosecutors advocated for Bankman-Fried to be held at Putnam jail, citing better access to internet facilities necessary for trial preparation.

Bankman-Fried faces charges of fraud and conspiracy in connection with the operation and subsequent collapse of his cryptocurrency exchange. He has consistently pleaded not guilty to all seven charges brought against him. This recent court ruling marks the second setback for Bankman-Fried on the same day. Judge Lewis Kaplan, overseeing the criminal case, granted prosecutors' motions to block every one of Bankman-Fried's proposed expert witnesses.

While the defense team may attempt to reintroduce some of these witnesses, they will face additional hurdles, and the U.S. Department of Justice retains the right to object to their inclusion.

The upcoming trial of Bankman-Fried in a federal courtroom in Manhattan is expected to draw significant attention within the cryptocurrency community and the broader financial industry. Legal experts and observers will closely monitor the proceedings as they unfold. Bankman-Fried's legal battle is seen as a significant test case for the regulation and oversight of the cryptocurrency industry, as authorities seek to address potential misconduct and fraud within this rapidly evolving sector.

Bankman-Fried Jailed Ahead of Trial amid Witness Tampering Allegations

Finance Magnates reported in August that Bankman-Fried has been sent to jail by Judge Lewis Kaplan ahead of his criminal trial set for October 2, 2023. This decision comes following allegations of witness tampering brought forth by U.S. prosecutors.

Bankman-Fried was initially released on a $250 million bond in December after being extradited to the United States in connection with the collapse of FTX and its affiliates.

The witness tampering allegations stem from Bankman-Fried sharing personal details of Caroline Ellison, a former ally and romantic partner, with the New York Times. Ellison, the former CEO of FTX's sister trading firm Alameda Research, has pleaded guilty to criminal charges and is cooperating with prosecutors. She is expected to be a key witness in Bankman-Fried's trial.